Hello Tim,
I need clarification on an item on my “Action Plan” section. Bank Statements – Irregular Lump Sum Withdrawals which says “Provide documentation to verify the funds/withdrawals were used for items outside the ongoing monthly expenses in order to credit the withdrawal towards payment shock savings. Fax together with a letter of explanation including the account name and number the date and amount of each withdrawal. If the bank statement indicates where the funds went documentation is not required.” I have been trying to get clarification from my MC but no luck (I guess too busy). I am not going to have any payment shock situation because my mortgage payment will not exceed my current rent payment. Please, can you shed more light on what I need to do to address this requirement?

I’m just going to chime in. If you have made any withdrawals that reflect on your bank statement just write a letter letting them know what the withdrawal was used for. If you withdrew the funds for like car maintenance or anything like that if you have any receipts just attach them with the letter of explanation so that they can add that back into your balances. If not then they will subtract those withdrawals and it could cause you to not be able to make your payment shock for the month thus setting you back from being qualified.

Keep in mind even though you may not have a payment shock they will still want to see some type of savings pattern each month. Your balances will need to increase from statement to statement not decrease.